The UK Government has officially confirmed a new £450 Cost of Living Payment for August 2025. This news has brought a sigh of relief for millions of households struggling with high energy bills, rising grocery prices, and mounting financial pressure. But not everyone will receive it — the rules around eligibility, payment dates, and how you receive the funds are crucial.
If you’re living in the UK and want to know whether you qualify, how and when you’ll get paid, and what to do if you don’t receive it, this guide has all the details.
Who Will Get The £450 Payment
The £450 payment is part of the government’s ongoing effort to support low-income households and vulnerable individuals affected by the ongoing cost-of-living crisis. To receive the payment, you must meet certain criteria.
Eligible recipients will include people who are on specific means-tested benefits. These benefits are:
- Universal Credit
- Pension Credit
- Income-Based Jobseeker’s Allowance (JSA)
- Income-Related Employment and Support Allowance (ESA)
- Income Support
- Working Tax Credit
- Child Tax Credit
If you are receiving one or more of the above benefits, and your claim was active during the qualifying period, you will likely receive the £450 payment automatically.
What Is The Qualifying Period
The qualifying period is the set window of dates during which you must have been entitled to the eligible benefit in order to receive the payment.
For the August 2025 payment, the qualifying period is expected to fall between 8th June and 6th July 2025, although the government may update this closer to the time. If your benefit claim was active during this period, you’re likely to be eligible.
If you’re on Universal Credit, you must have received a payment for an assessment period that ended within that qualifying window.
How The Payment Will Be Made
You don’t need to apply for the £450 Cost of Living Payment. The Department for Work and Pensions (DWP) and HM Revenue and Customs (HMRC) will pay it automatically if you qualify.
The payment will be made directly into the same bank account where you receive your benefits. It will appear as a separate entry, labelled something like “DWP COL” or “HMRC COL”.
There’s no need to call or contact any department — doing so may only slow down the process or tie up phone lines. But make sure your bank details and personal information are updated with DWP or HMRC to avoid delays.
When The £450 Will Be Paid
According to the latest update from the DWP, payments will begin rolling out from Monday, 12th August 2025, and are expected to continue over a two-week period.
This means that most eligible households will receive their payment between 12th August and 23rd August 2025.
Those on DWP-administered benefits like Universal Credit and Pension Credit will usually receive their payments first. HMRC-administered benefits, such as Tax Credits, may take a few more days.
What If You Don’t Receive It
If you believe you are eligible but haven’t received the £450 payment by the end of August, don’t panic. Sometimes delays occur due to bank verification, incorrect details, or administrative issues.
The DWP and HMRC usually open a “missing payment” contact portal a few days after the rollout is complete. You’ll be able to report the missing payment online or through a helpline.
Before that, double-check:
- Your bank account (search for “DWP COL” or “HMRC COL”)
- That your benefit claim was active during the qualifying period
- That your benefit payments didn’t stop or pause due to change of circumstances
Will This Affect Other Benefits
The £450 payment is a non-taxable and non-deductible grant. It will not count as income and will not reduce any of your existing benefits. That means you’ll get it on top of your usual Universal Credit, Pension Credit, or Tax Credits.
It also will not affect any savings you hold or be included in your benefit cap. So there’s no downside to receiving this extra support.
What If You Only Recently Applied For Benefits
If you applied for a benefit after the qualifying window or your claim is still under review, you may not receive this payment. However, there may still be backdated payments if your claim is approved and applies to the qualifying dates.
If you are approved with a backdated claim, the government has in the past included those households in later rounds or made one-time exceptions. Keep an eye on your benefit letters and any notices from the DWP.
How This Payment Fits Into Wider Support
The £450 payment is part of a broader strategy by the UK Government to support struggling households. While the Energy Price Guarantee and other schemes are gradually being phased out, this targeted financial help ensures that the most vulnerable are not left behind.
Previously, the government issued similar support payments such as:
- £301 (Spring 2023)
- £300 (Autumn 2023)
- £299 (Winter 2024)
This £450 payment for August 2025 is one of the highest so far, indicating the government’s recognition of ongoing inflation and cost pressures on households.
Who Won’t Be Eligible
Not everyone will receive the £450. If your benefits are contribution-based only, such as contribution-based JSA or ESA, you may not qualify unless you’re also on a qualifying income-based benefit.
Similarly, if your benefit payments were paused, sanctioned, or not active during the qualifying dates, you might be excluded.
Also, those receiving only the State Pension and no Pension Credit will not automatically qualify, unless they also claim another eligible benefit.
How To Prepare Now
If you think you may be eligible but aren’t yet receiving a qualifying benefit, it’s not too late. You can apply for:
- Pension Credit (if you’re over State Pension age and on a low income)
- Universal Credit (if you’re under pension age and meet income/household criteria)
- Other income-related support depending on your situation
Applications can be made online via GOV.UK or by calling the relevant DWP or HMRC helpline.
Also, make sure all your details are current, including your:
- Bank account
- National Insurance number
- Home address
- Email and phone number (if registered)
Why This Payment Matters
The ongoing cost-of-living crisis has made basic necessities harder to afford for many across the UK. With energy bills remaining high and groceries costing more than ever, this £450 payment could help cover key expenses such as rent, utility bills, or essential items for children and older adults.
For pensioners and low-income families, even a one-off payment like this can make a significant difference.
Final Words
If you’re struggling financially and wondering whether help is coming your way, the good news is: Yes, support is on the way. The £450 Cost of Living Payment confirmed for August 2025 could provide a vital cushion — but only if you meet the criteria.
Stay updated through official GOV.UK announcements and keep your benefit records in order. This payment, although one-off, could be a crucial support in these challenging times.
